TECH SUPPLIER Jun 2021 - Market Perspective - Doc # CA46290421

Canadian Communications Service Provider Capex Spending, 2020–2021

By:

Lawrence Surtees
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Table of Contents

Executive Snapshot

Figure: Executive Snapshot: Canadian Communications Service Provider Capex Spending, 2020–2021

New Market Developments and Dynamics

Introduction

Overview

Global View

Figure: Global Telecom Service Provider Capital Expenditures, 2006-2020

Canadian Communications SPs Capital Spending in 2020

Figure: Canadian Telecom Service Provider Revenue Versus Capex (Excluding Cable Companies), 2008-2020 (C$M)

Figure: Canadian Telecom Services Capital Expenditures (Excluding Cable Companies), 2006-2020 (C$M)

Table: Canadian Telecom Service Providers Capex Budget Variances by Company, January to December 2020 (C$M)

Figure: Canadian Telecom Provider Capex Budget Changes, 2020 (C$M)

Figure: Canadian ILEC Capital Intensity Ratios, 2020 (Capex as Percentage of Revenue)

Figure: Canadian Communications Service Provider Revenue and Capital Expenditures, 2008–2020 (C$M)

Top Investment Priorities

Industry Dynamics

Accelerated Capital Cost Tax Allowance

Assessment of Future Directions: Key Network Capex Drivers

Figure: Enabling Technologies of Industry 4.0

Figure: NGN Technologies Enable Enterprise Vertical Market Digital Transformation

Communications SP Network Transformations in Progress

The Need for Bandwidth and the Optical Imperative

Global IP Traffic Growth and COVID-19 Pandemic

Figure: Worldwide Global DataSphere, 2020–2025 (ZB)

IP VPN and Metro Ethernet

Table: Canadian Metro Ethernet Providers' Optical Equipment Vendors, 2020

From 100G to 400G Optical Backbones

Figure: Canadian Principal Fibre-Optic Backbone Routes, 2020
Table: Major Canadian Fibre-Optic Network Route Length, 2020
Table: Canadian Optical Network Providers' Equipment Vendors, 2021

Undersea Fibre Links Proposed for Nunavut

Table: Comparison of Backbone Communication Infrastructures

Federal Government Broadband Fund Stimulates Projects

Fibre-to-the-Home Programs Accelerate

Figure: Comparison of Telecom and Cable Broadband Technologies

Cloud Computing and Datacentres

Software-Defined Networks and Network Virtualization

Network Function Virtualization

Figure: Next-Generation Network Technology Building Blocks

Facebook's Next-Gen TIP Carrier Initiative

SDN Tied to Big Data and Analytics and Artificial Intelligence

Wireless Broadband at Gigabit Speed

4G LTE at Metro Ethernet Speed

Figure: Wireless Network Speed Evolution to 5G

5G, SDN, and the 3rd Platform

Figure: 5G Infrastructure Built on SDN and NFV
Figure: 5G Network Slice API-Enabled Ecosystem

Telus Implements Cloud Automation Slicing Technology with DZS

Multi-Access Edge Computing

Figure: Multi-Access Edge Computing and IoT

Millimeter Wave Technology Key to 5G

Figure: Wireless 5G Millimeter Wave Frequency Spectrum
Figure: Trade-Offs of 5G Wireless Frequency Bands

Public 5G and Private Wi-Fi 6 Go Hand in Hand

Wireless Private 5G Networks and Wi-Fi 6

Improved Latency Key Benefit of 5G Millimeter Wave Frequencies

Figure: Wireless Latency Based on Location of Network Element

Key 5G Spectrum Auction Pending

Figure: Canadian 5G Wireless Priority 1 Spectrum Release Timing, 2018–2022

Radio Head Cell Tower Technology

Figure: Canadian Cell Tower Counts for Major Canadian Wireless Providers, June 2019-November 2020 (Monthly)
Table: Canadian Cell Sites by Carrier, November 2020
Table: Canadian Wireless Providers' Equipment Vendors, 2021
Figure: Big 3 Incumbent Wireless and 5G Networks Coverage, 2020

6G Already Looms

Federal and Québec Government Support Telesat LEO Satellite Project

Figure: Proposed LEO Satellite Constellations with Coverage of Canada

Capex 2021 Forecast and Assumptions

Impact of COVID-19 Pandemic

COVID and Remote Work

Figure: Proportion of Canadian Employees Requiring Home Access Before, During, and After the COVID-19 Pandemic by Firm Size (% All Respondents)

Figure: COVID-19 Spurs Important New ICT Investments

Capex by Segment and Vendor Profiles

Figure: Canadian Telecom Service Provider Revenue and Capex, 2007-2021

Figure: Canadian Telecom Services Capex Annual Change, 2006–2021 (%)

Table: Canadian Telecom Capital Expenditures by Company, 2010-2021 (C$M)

Figure: Canadian Telecom Capex by Segment, 2007-2021

Figure: Canadian Wireline Versus Wireless Capex, 2007-2021 (C$M)

Figure: Canadian Top Telecom Capital Spenders, 2006–2021

Incumbent Local Exchange Carriers

Figure: Canadian ILEC Wireline Capex, 2006–2021

Figure: Canadian ILEC and Total Capex Annual Budget Changes, 2006–2021

Figure: Canadian ILEC Wireline and Wireless Capital Intensity Ratio, 2007–2021

Table: Canadian ILEC Wireline Capex, 2010-2021 (C$M)

Bell Canada

Figure: Bell Canada ILEC Wireline Capex and Capital Intensity Ratio, 2006–2021
Figure: Bell Canada Fibre-Optic Footprint, Locations Passed, 2016–2020 (M)
Figure: Bell Canada Business Markets Integrated Network Portfolio and Virtual Network Service Platform

Telus

Table: Telus Capital Expenditure by Province, 2019-2021 (C$M)

SaskTel

Interexchange and Competitive Local Exchange Carriers

Figure: Canadian IXC/CLEC Capital Expenditure, 2006–2021

Table: Canadian IXC and CLEC Capex, 2010-2021 (C$M)

Figure: Canadian IXC/CLEC Segment and Total Capex Annual Budget Change, 2006-2021 (%)

Digital Colony (Allstream)

Figure: Digital Colony (Allstream) Revenue and Capex, 2002–2021

Digital Colony (Aptum Technologies)

AT&T Global Services

Rogers For Business

Shaw

Eastlink

Primus Canada

Wireless

Figure: Canadian Wireless Capex, 2006–2021

Figure: Canadian Wireless Revenue Versus Capex, 2006–2021

Figure: Canadian Wireless and Telecom Capex Annual Budget Change, 2006–2021

Table: Canadian Wireless Service Provider Capex, 2010-2021 (C$M)

Rogers Wireless

Figure: Rogers Wireless Initial 5G Non-Standalone Rollout, 2020

Rogers-Shaw Hookup Pegged to 5G Capex

Bell Mobility

Figure: Bell Mobility 3G and 4G Network Peak Speeds, 2006–2020

Telus Mobility

SaskTel Wireless

Vidéotron Wireless

Eastlink

Shaw Freedom Mobile

SSi Mobile

TeraGo Networks

Cable Companies

Table: Canadian Cable Company Capex Budgets, 2010-2021 (C$M)

Figure: Canadian Cable Company Capex Spending, 2006–2021

Rogers Cable

Figure: Top 5 Canadian Telecom Capex Spenders, 2005–2021

Shaw Cable

Vidéotron Cable

Cogeco Connexion

Eastlink Cable

Canadian Communications Capex

Figure: Canadian Communications Service Provider Revenue Versus Capex, 2009–2021

Figure: Canadian Communications Services Capital Expenditure, 2006–2021

Table: Canadian Telecom Capex Spending (Including Cable) by Company, 2010-2021 (C$M)

Figure: Canadian Communications Capex by Segment, 2006–2021

Final Frontier: The Back Office

Figure: Capex Spending Infrastructure Versus Back Office, 2021

Figure: Evolution of Communications Service Provider OSS-BSS Operations and Monetization

Figure: Communications SP Transformation with Network Automation with SDN and NFV

Advice for Service Providers

Learn More

Related Research

Definitions

Glossary

Telecom Taxonomy and Service Definitions

Figure: Canadian Communications Market Taxonomy and Key Players, 2021

Local TDM and Wireline

VoIP, Cable Telephony, and SIP Trunk

SIP Trunk

Long Distance

Wireless

Wireless Data Segmentation

Wireless Wholesale

Internet

Data

Video Services

Figure: Over-the-Top Paid Video Services Market Landscape

Methodology

SIP Terms

Difficulty Reconciling Forecasts with CRTC Market Data

Synopsis

Content


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